Funds and trusts four pros are buying and selling: Q3 2025

The FTSE 100 has rallied to record highs, as investors turn to UK stocks amid ongoing concerns around tariffs. Meanwhile, US stocks have rallied, led by tech companies including NVIDIA Corp (NASDAQ:NVDA), which has become the first $4 trillion (£2.9 trillion) company.

At the same time, trade tensions and concerns about inflation are keeping investors cautious, as volatility may rise. But as always, our fund-of-funds investors have a range of views on how to position their portfolios in the current economic environment.

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Every quarter, our multi-manager panel participants discuss their current bull and bear points. They alsoreveal the new funds and investment trusts they have bought, increased their holdings in, and trimmed or sold.

Simon Evan-Cook, manager of the Downing Fox Funds

Reason to be bullish: political developments in both the US and the UK, namely President Donald Trump’s “big, beautiful bill” and the Labour government’s retreat from welfare cuts, are likely to provide an economic boost in the short term (albeit at the potential cost of longer-term issues).

Reasons to be bearish: the world seems quite chilled about the impact of tariffs, but it’s likely that we haven’t yet experienced the true impact from higher costs and the uncertainty caused by ever-shifting tariff rates. These could resurface in a more menacing fashion as we move through autumn.

Increased: in the previous quarter, he added Nutshell Growth, and his team has continued to build their position as their conviction in this fund grows. “Its high-turnover approach to holding quality companies is proving particularly well-suited to the volatile, fast-changing markets of 2025,” he says.

Trimmed: Evan-Cook further reduced his exposure to the US dollar over the quarter. It has been on a decade-long run of strengthening, and it has been a useful diversifier. But Evan-Cook notes that “recent political events have cast it in a different light among international investors, and we’re concerned that it has lost much of its defensive lustre”.

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Adam Norris, co-manager CT Global Managed Portfolio

Reason to be bullish:economic fundamentals remain reasonable, with companies and consumers adjusting well to the “new normal” interest rate environment. Earnings growth appears robust and the path for interest rates in most economies is lower.

Reasons to be bearish:the impressive rebound in financial markets since April, so far, is based on the assumption that we have seen the worst of the tariff threats and pragmatism will prevail. If tariff concerns were to rear their head once again, market multiples could be challenged once more.

Bought: the use of data in everyday life continues to grow at an exponential rate. Accessing physical infrastructure assets which are vital to the digital economy, such as data centres, towers and fibre-optic cable companies, allows investors to participate in the contracted cash flows of the assets. That’s why Norris has bought Cordiant Digital Infrastructure Ord (LSE:CORD), an investment trust which utilises a buy, build and grow strategy within portfolio companies that own and operate digital infrastructure. “Despite strong earnings growth within their portfolio companies, the trust trades at a meaningful discount (-25.8%) to its net asset value (NAV),” says Norris.

Increased: Norris has increased his position in Oakley Capital Investments Ord (LSE:OCI), a private equity investment trust. It partners and supports ambitious, growth-focused entrepreneurs. He says: “Increasing evidence of its strong partnering can be found in the announced sale of portfolio company ‘vLex’ at circa 300% premium to carrying value, adding an estimated 4% to the trust’s NAV.”

Despite OCI’s strong long-term growth, the investment trust continues to trade at a large discount of -25.9% to its NAV.

Trimmed: after a strong run for the UK stock market, he’s trimmed UK equities across the market capitalisation, adding to alternative assets, private equity, and global equities. While UK equities appear to have cheap valuations, Norris also considers earnings growth and behaviourals (i.e. flows), which, he notes“present a more difficult backdrop for the asset class versus other geographies”. Trims include Mercantile Ord (LSE:MRC), Henderson High Income Ord (LSE:HHI) and Finsbury Growth & Income Ord (LSE:FGT).

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Vincent Ropers, co-manager of IFSL Wise Multi-Asset Growth & IFSL Wise Multi-Asset Income

Reason to be bullish: after a chaotic quarter drowned in tariff uncertainty and afflicted by war, the resilience of the global economy has beenquite remarkable and is a testament to the strength of its fundamentals, both at the corporate and the consumer levels.

Reason to be bearish: that said, it will take time for the new transactional world order imposed by Trump to permeate through the system and cracks are bound to appear over the coming months. Moreover, increasing fiscal deficits in developed markets have the potential to sow the seeds for the next crisis, although it’s always hard to predict when markets will genuinely start worrying about such issues.

Bought: Ropers added a new position in Workspace Group (LSE:WKP) over the quarter. This is a REIT focused on flexible office space in central London. “The company has suffered from a cyclical downturn as a number of tenants have vacated larger units in their estate,” he says. As a result, earnings have fallen, however, a covered yield of 7% appears to offer an attractive point into the company that should be well-placed to see its earnings recover over the next couple of years as these larger units are sub-divided and re-let at higher rents.

Increased: he built up his position in RIT Capital Partners Ord (LSE:RCP) during the weakness following “Liberation Day” in April. His team also increased their position in the subsequent weeks as the trust lagged the sharp recovery in risk assets.

“We believe that the strategy is well suited for the current uncertain environment, thanks to the quality of its portfolio of global public and private companies, as well as its downside protection strategies,” says Ropers. At a time when investors show some signs of complacency with regards to risk, he thinks it’s the right time to add to this position to secure attractive future long-term returns.

Trimmed: after a great run of performance, Ropers trimmed his position in Fidelity Special Values Ord (LSE:FSV). While it remains a large holding in his funds, he says: “The combination of market-beating NAV returns and tightening of a discount that reflected investors’ dislike of UK equities and investment trusts at the start of the year, forced us to lock some profits in.”

He thinks, however, that the recent resurgence in UK equities can persist and should continue to trickle down the market cap spectrum where valuations remain at extreme lows. Fund manager Alex Wright’s contrarian style should therefore be helpful to continue taking advantage of opportunities in the months ahead.  

Wright was recently interviewed by interactive investor. You can watch the interview below.

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Tihana Ibrahimpasic, portfolio manager, multi-asset team, Janus Henderson

Reason to be bullish: economic growth, particularly in the US, has remained resilient despite previous concerns about tariffs, supported by fiscal stimulus and strong corporate earnings forecasts, which can sustain the rally in equities and underpin high asset valuations.

Reason to be bearish: persistent trade policy uncertainty and signs of US labour market softening raise the risk of recession, while full valuations across many asset classes create fragility and potential for market corrections if economic conditions deteriorate.

Bought:Ibrahimpasic reopened a position in the FSSA All China fund, which she previously heldacross client portfolios. “While we, at times, use passive instruments to tactically adjust exposure in a timely manner, particularly when it comes to fast-moving volatile areas of the market, structurally we prefer to have an active manager with local expertise,” she says. The FSSA strategy is a diversified portfolio with quality/growth characteristics. It’s had a successful track record that also benefited from a stable and experienced team.

Increased: she’s added to her position in WS Gresham House UK Multi Cap strategy, which is run by a well-established team. Ibrahimpasic says: “It seeks to invest in high-quality, predominantly small-cap businesses.” It’s structured as a relatively high-conviction portfolio with around 40 names. Its top three holdings are engineering and environmental consultancy Ricardo (LSE:RCDO), wealth manager Brooks Macdonald Group (LSE:BRK) and price comparison website Moneysupermarket.

The four multi-manager panellists

Simon Evan-Cook is a multi-asset, fund-of-funds manager with over 25 years’ experience in the investment industry. He joined Downing in 2022 to set up and manage the Downing Fox range of funds.

Adam Norris became co-manager of the CT Global Managed Portfolio Growth Ord (LSE:CMPG)and CT Global Managed Portfolio Income Ord (LSE:CMPI) in July 2025. He succeeded Peter Hewitt, who has retired. He joined the multi-manager team in February 2016. The two investment trusts specialise in buying other investment trusts.

Vincent Ropers is a portfolio manager at Wise Funds, responsible for multi-asset strategies, using value and fundamental investment styles. He is co-manager of IFSL Wise Multi-Asset Growth and IFSL Wise Multi-Asset Income.

Tihana Ibrahimpasic is a portfolio manager on the multi-asset team at Janus Henderson Investors. Prior to taking this role in 2021, she was a research analyst in the team from 2018.